Watch the full video at https://rumble.com/c/c-262921; and at https://youtu.be/_m3lbfaeFX4  It is often difficult to determine the actual cash value of a personal property and can be interpreted in different jurisdictions. When an insurance company and an insured person cannot agree on the amount of the actual cash loss, they have the right to request an assessment – a limited form of arbitration that can only determine the amount of the actual cash value and loss. policy or local government legislation Actual cash value (ACV) can be determined by subtracting from full amortization of compensation costs, based on the age and benefit of the property concerned. In other jurisdictions or due to different policy formulations, ACV may be the difference between the fair market value (FMV) of the item before the loss and its FMV after the loss.
Some states apply the broad rule of evidence and will take into account the overriding use of depreciation, consideration of FMV or other evidence that will provide true insurance to the insured.
Limiting coverage to ACV results in lower premiums, but it can end up leaving the insured with a large gap between the size of the damages recovered after a loss. ACV may not be enough to rebuild the home or replace the contents.
For example, if the housing structure is in poor physical condition, is old or constructed with a design that is no longer popular, its FMV may be very small with most of its value in the country. In some cases, the structure even degrades the full value of the land and structure so that its ACV can be zero while the replacement cost can be $ 500,000 or more. It is therefore absolutely necessary before choosing a policy limit that the insured understands the structure's ACV and its complete RCV.
© 2021 – Barry Zalma Barry Zalma, Esq., CFE, now limits his practice to serving as an insurance consultant specializing in insurance coverage, insurance claims handling, cheating and insurance fraud almost equally for insurers and insurers.
He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims attorney and more than 54 years in the insurance industry.
He is available at http://www.zalma.com and firstname.lastname@example.org. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award. For the past 53 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurers and their claims staff to become insurance claims staff.
Go to the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Zalma on Twitter at https://twitter.com/bzalma ; Go to Barry Zalma videos on Rumble.com at https://rumble.com/c/c-262921; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to the library for insurance claims – https://zalma.com/blog/insurance-claims-  bibliotek / Read posts from Barry Zalma at https://parler.com/profile / Hymn / post; and the last two issues of ZIFL at https://zalma.com/zalmas-insurance-fraud-letter-2/ podcast now available at https://podcasts.apple.com/us/podcast/zalma-on -insurance / id1509583809? uo = 4